Why Should a Small Business Have an EAP?

While smaller companies have fewer employers and therefore lower utilization of an EAP program, small employers with employee problems may suffer the effects of those problems more. Decreased performance and productivity will hurt a smaller employer’s bottom line faster. Workplace negativity can spread like wildfire in small company and if employees leave on masse, a small company could be damaged beyond repair. As a result, an employer that provides a high quality, personalized, full service EAP (Core-Technology EAP) can help both the employer and employee by decreasing liability and risk, reducing accidents and improving employee morale and loyalty. Employees who feels supported by their employer will be far more enagaged. The EAP helps a small employer decrease the stress small business owners encounter when managing a lot of responsibilities with little support. Small businesses with a high quality EAP will find the EAP is a partner in helping them with issues such as change, lay-offs, employee personal and work problems and potential serious employee problems such as intoxication on the job, recipients of domestic violence, threats of workplace violence, allegations of sexual harassment, death or serious injury at work and more. No business is immune from human problems, regardless of their size.

The Core-Technology EAP that deals with employee problems, (and those employees who may have problems with management), is often the first to learn of an employee’s intent to sue their employer. They may tell the EAP counselor, “I am upset with my supervisor because…and I am thinking of suing”. If handled properly, the EAP can be a front line defense against employment claims and related lawsuits. Professional EAP counselors help employees to seek alternate solutions to personal problems and more constructive alternatives to meet their needs. Some options would be to refer them to human resources, provide mediation or conflict resolution services or other dispute resolution channels. When employees have a safe, confidential place to process their anger or feelings they can be defused enough to work toward a resolution or in some cases, the employee can be coached to pursue employment elsewhere which may be the best course to avoid the pursuit of a lawsuit, while making the employee happier.

EAP’s can help save employers money by preventing lawsuits including harassment, wrongful termination and hostile workplace allegations. When the EAP is well promoted and troubled employees are encouraged to contact the EAP in order to get their needs met in appropriate ways, they are less likely to sue. In addition, managers should be taught to consult with the EAP as soon as they are aware that an employees is disgruntled or troubled.

Employee assistance programs that prevent Employment Practices Liability and loss prevention may far exceed health insurance cost containment. According to Dan Fuerst, www.workexcel.com, the average jury award for wrongful termination is $500,000 with out of court settlements averaging $100,000. The low cost of a fee per employee based program is so minimal compared to the potential risk employers face by being sued by their employers.

The Core-Technology EAP is one that is not a “free” program that is embedded in an insurance or disability program but one that not only provides assessement, referrals, counseling and case management, but also provides training, management coaching and consultation and ongoing support to both the employer and employee.